Shift to Online Shopping Contributed in Stitch Fix (SFIX) Impressive Returns
Miller Value Partners, an investment management firm, published its ‘Opportunity Equity’ fourth-quarter 2020 Investor Letter – a copy of which can be seen here. A net return of 35.4% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.15% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Miller Value Partners, in their Q4 2020 Investor Letter, said Stitch Fix, Inc. (NASDAQ: SFIX) was a top contributor for their portfolio in the fourth quarter of 2020. Stitch Fix, Inc. is an online personal styling service company that currently has a $8.9 billion market cap. For the past 3 months, SFIX delivered an impressive 140.76% return and settled at $85.06 per share at the closing of February 12th.
Here is what Miller Value Partners has to say about Stitch Fix, Inc. in their Q4 2020 investor letter:
"Stitch Fix, Inc. (SFIX) climbed an impressive 116% in the quarter following the release of their Fiscal Year (FY) 2021 first quarter results. Revenue for the first quarter came in at $490M, beating estimates of $481M. Gross margins were higher than anticipated at 44.7% versus expectations of 43.6% and adjusted net income coming in at $9.54M versus expectations for a -$18.5M decline. The company provided stronger than expected full-year guidance, with revenues of $2.05-$2.14B, relative to $2.01B estimates. Stitch Fix finally announced their new CFO, Dan Jedda, who joins the company from Amazon.com. The company is beginning to see uptake in their “direct buy” offering which is allowing them to expand their products to customers that are not current Fix members allowing them to expand their total addressable market. The shift to online purchasing has also further supported the company’s strong momentum."
Rawpixel.com/Shutterstock.com
Last September, we published an article telling that Stitch Fix, Inc. (NASDAQ: SFIX) was in 29 hedge fund portfolios. Its all time high statistics is 47. SFIX delivered a whopping 219.41% return in the past 12 months.
Our calculations show that Stitch Fix, Inc. (NASDAQ: SFIX) does not belong in our list of the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
https://youtu.be/OgBhPDmWMtI
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.
Disclosure: None. This article is originally published at Insider Monkey.
